Lenovo Acquires Stoneware to Expand Secure Cloud Computing

RESEARCH TRIANGLE PARK, N.C. & CARMEL, Ind.--(BUSINESS WIRE)--Lenovo
(HKSE: 0992) (PINK SHEETS: LNVGY) today announced the acquisition of
Stoneware Inc., to enhance and expand its cloud computing solutions, a
key component of Lenovo’s product portfolio. Stoneware has built a
strong, profitable, and growing business by delivering innovative
software technologies, which are helping people and organizations make
the complex environment of cloud computing that much simpler.

As a result of this acquisition, Lenovo will add significant new
technologies and accelerate its capabilities for both commercial and
consumer cloud offerings, particularly the ability to provide secure
content across multiple devices in education and government.

Lenovo’s product portfolio will benefit from the experience and
expertise of the Stoneware team. Stoneware already has several strong,
highly innovative cloud products – including webNetwork and LanSchool –
that serve millions of users primarily in education and the public
sector. Lenovo will help extend the reach of these products as well as
new offerings through its global reach as the world’s second largest PC
maker and number one commercial laptop company. Lenovo will also help
develop the opportunity to extend this technology, beyond the current
strongholds that Stoneware has in government and in education, into more
consumer-focused offerings over time.

“Adding Stoneware cloud computing into the Lenovo line up presents a
significant opportunity to leverage their success, and enhance our PC
Plus offerings, all to the benefit of our customers,“ said Peter
Hortensius, senior vice president, and president, Product Group, Lenovo.
“We have a history of innovation and embracing new technologies, and the
talented team at Stoneware will fit in perfectly with our long-term
strategy."

With today’s typical technology user carrying multiple devices, the PC
Plus era is here, and Lenovo is aggressively expanding its product
offerings and capabilities to help people and businesses connect across
any device to the content and communities that matter most to them.
Customers simply want a better way to connect their PC with their tablet
with their smartphone, and with Stoneware, Lenovo aims to help them get
there.

The purchase of Stoneware is critical to Lenovo’s broader PC Plus
strategy. As a recognized leader in PCs, with the momentum of an
expanding tablet and smartphone business and a newly formed joint
venture with EMC, Lenovo aims to offer end-to-end secure solutions to
business customers and compelling cloud-based technology to consumers.

“We are pleased to be joining forces with Lenovo,” said Rick German,
CEO, Stoneware. “Lenovo is one of the largest and fastest growing
technology companies in the world and for Stoneware, a small company
with roots in the heartland of the United States, we are delighted to be
given the opportunity to deliver real benefit to customers on a global
stage.”

While financial terms of the deal were not disclosed, the acquisition is
not material to Lenovo’s earnings. Stoneware has 67 employees, located
in either Indiana or Salt Lake City, Utah. As part of this agreement, it
is expected that all U.S.-based Stoneware employees will join Lenovo,
and that there will be no job losses as a result of today’s announcement.

The acquisition is expected to be completed by the end of 2012 and in
the coming weeks the Stoneware team will be fully integrated into
Lenovo. The Stoneware team will remain in Indiana and Utah and will
continue to sell both webNetwork and LanSchool while serving customers
and partners with the same level of dedication and excellence.

About Lenovo

Lenovo (HKSE: 0992) (PINK SHEETS: LNVGY) is a $US30 billion personal
technology company and the world’s second largest PC company, serving
customers in more than 160 countries. Dedicated to building
exceptionally engineered PCs and mobile internet devices, Lenovo’s
business is built on product innovation, a highly efficient global
supply chain and strong strategic execution. Formed by Lenovo Group’s
acquisition of the former IBM Personal Computing Division, the Company
develops, manufactures and markets reliable, high-quality, secure and
easy-to-use technology products and services. Its product lines include
legendary Think-branded commercial PCs and Idea-branded consumer PCs, as
well as servers, workstations, and a family of mobile internet devices,
including tablets and smart phones. Lenovo has major research centers in
Yamato, Japan; Beijing, Shanghai and Shenzhen, China; and Raleigh, North
Carolina. For more information, see www.lenovo.com.